Virgin Atlantic to unveil consortium bid for Flybe today?

It was reported on Thursday that a Virgin Atlantic-led consortium will announce a bid for Flybe on Friday morning.

This is a complex deal but, at the same time, there is a certain logic to it if the reports are correct.

Various sources state that it is a three-way bid comprising:

• Virgin Atlantic, which will be the majority shareholder
• Stobart Group, which is contributing assets but no cash
• a US private equity group, Cyrus Capital Partners

Stobart Group will be injecting its Stobart Air business into the new company.  This already operates some Flybe routes under franchise.  You may remember that Stobart Air was publicly considering a bid for Flybe in 2018 but did not go ahead.

Stobart Group also owns London Southend and Carlisle Lake District airports.

Virgin Atlantic gets to protect its codeshare operation which was feeding a lot of business to Virgin’s Manchester hub.  Virgin is under huge pressure at Manchester from Thomas Cook’s long-haul operation and it can’t afford to lose connecting Flybe passengers.

Virgin will, presumably, also get first dibs on the Flybe slots at Heathrow.  The use of these slots is restricted, but they can soon be used for any European destination, Moscow, Cairo or Riyadh.  What Virgin will NOT be doing is trying to feed its Heathrow services with domestic connections, because only Terminal 2 and Terminal 5 can handle domestic flights and Virgin Atlantic is in Terminal 3.

Because this is a consortium bid, Flybe will presumably remain a standalone business.  There is likely to be a new board but it should be business as usual for the rest of the staff.

There is a question over whether Avios continues to be used as Flybe’s loyalty currency.  If Flybe is rebranded under a Virgin name there is zero chance, of course.  If the Flybe brand is retained and Virgin’s investment remains just that – a fairly passive investment – then perhaps the Avios option will remain.  Flybe believes that it drives passengers, but of course it is paying Avios Group a decent amount of money and Virgin Atlantic may prefer to keep that payment in-house by awarding Flying Club miles instead.  It would also send an odd message about the position of the new Virgin Group Loyalty Company if Avios remained.

So …. lot’s going on.  Let’s see what the official announcement brings.

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How to earn Virgin Points from UK credit cards (April 2025)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 18,000 Virgin Points and the free card has a bonus of 3,000 Virgin Points):

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

3,000 bonus points, no fee and 1 point for every £1 you spend Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 50,000 Membership Rewards points, which convert into 50,000 Virgin Points.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points.